tv Street Signs CNBC July 8, 2016 4:00am-5:01am EDT
hi, everybody. good morning. welcome to "street signs." i'm louisa bojesen. i'm julia. these are your headlines. five officers are lead in dallas. dallas police chief says their work through the night to make sure all systematuspects have b captured. >> we have involved in negotiations with a shooter involved at the garage in downtown dallas. this suspect we're negotiating with for the last 45 minutes has been exchanging gunfire and not
being very cooperative. european stocks hold onto modst gains following a volatile week for european's embassies. shares of air france at the bottom of the stock 600 after the airline announces the cfo is stepping down. now the death toll from dallas police shooting is rising. five officers have been killed in the attack. nbc affiliate kxas is reporting that one of the suspected shooters has been, quote,
neutralized. we're not sure what that means, but that's what we're hearing. >> >> reporter: shots fired over the protest over two police deaths of african-american males this week turn violent. at least ten officers shot with multiple fatalities. >> i ask everybody to focus on one thing right now. that is the dallas police officers, the families, those deceased, thoed in the hospital. >> reporter: a sharp contrast to the peaceful demonstrations until baton rouge. that incident caught on cell phone video is provoking questions and outrage nationwide calling for the officers to be charged with murder. if governor asked to keep the peace. >> now may be a time for
demonstration, may be a time for protest, but there is no time for minnesota. >> reporter: continues in minnesota. video of the routine traffic stop turned deadly wednesday night also went viral. it shows the moments after the officer shoots casteo. his girlfriend streaming it online. mark dayton called for justice. >> would this have happened if the drivers or the passengers were white? i don't think it would have. justice must be served. >> reporter: protesters across the nation are making sure their voices are heard. it's not clear what happened moments before the confrontation and as two communities and the nation look for answers, the investigations are just beginning. curt gregory, nbc news. >> i don't know where to start. you know when you're so angry and so upset it's just beyond me what's taking place in the u.s.
if you look at it from above, it seem as couple of issues are going on now. you have an issue of a police society which is maybe becoming too much of -- too heavy handed, right? wref been seeing -- unfortunately these are first time these vshs been going on. you have an issue with the police force. they have to get to grips with not treating black people differently than anyone else in the u.s. black men are much more likely to die being shot of police officers than anyone else, regardless if they're armed or not. the numbers show that over again, and, again, and, again. >> obama pointed out. he said there's a separation. particular through obama's presidency. i know you have strong feelings about this. the use of firearms in the u.s. and the ability to carry the
weapons. we get to a situation where we have here. the use or the police force pacts have been aggressive. there's a faear factor. >> huge fear factor. comes back to my point. if i were a police officer i would be shooting everything. you become jumpy. especially when you know everybody is allowed to carry a gun as well. so why put yourself in that position in the first place. wouldn't you want the norm to be very few have guns. >> you have the right people want to defend themselves. how do you break the belief that people want to carry guns to protect themselves particularly because of events like this. >> but if you don't have a gun, why should i carry a gun. >> sure, but the police are not supposed to be trigger happy. >> how do we reset this problem. things have escalated to such a point where both sides carry weapons.
police are always going to carry weapons. you have the black community in particular here i don't want to say it's them more aggressive here, but you have the black community, beon say came out to say look, every life matters here. >> then you've also good an issue about the legal system because whoen yen you look at t figures, the stats, if somebody is caught for a crime and they're black, they're more likely to be convicted as well. in terms of looking at numbers of who has guns to start with, it's who gets put to jail to start with and who gets convicted of those crimes. the whole system. i have no solution from it. i would love to hear from all of you guys. how do you come to terms with a society where the differentials are, you know, you start on a basis that is so wrong. how do you deal with it? >> how do you reset that relationship? i don't know. it's the property for the next president.
it's a difficult one. >> i tweeted an article. it's an excellent article. it's reused from 2014 from the economist . i read it back then. i thought it was brilliant. it's called cops are soldiers. i did put it online. i did tweet it. things like swat teams in the u.s. in 1980, these are big teams of police officers that reasonably prudent -- are sent out to deal with problems. 1980, guess how many times per year they deployed in 2013? 50,000 times. 50,000 times that you're sending a whole swat police team out to investigate claims that just seem crazy and people get shot, also by mistake. if you have ten men in the
middle of the night banging down doors and you're sleeping, my response. >> the figures for that, we'll move on, all the killings in the u.s. 60% in 2012 were perpetrated with firearms. just 10% of the killings in the uk were with firearms. >> it's nuts. >> you can follow all the events on our blog. let's give you an update on what's going on in the markets this morning. >> yes. european equity markets flat. ftse mib just up. of course, we are also just kind of digesting what kind of a week it's been and brexit. there's been a lot of positi positioning into safe haven trades. you have gold, the u.s. dollar.
i'm going to be talking to our guests about whether or not that can continue. at the top of the show, we had a conversation outside of the business world. if you want to get involved and get your voices heard, you can find juls and myself @louisa bojesen. we're happy to hear your comment about what's taking place in the u.s. payroll friday. goldman sachs. they're the outliar. 210,000 jobs added. we learned this week that a number of policy makers expressed slowdowns in the market. you can see behind me. those figures were skewed bid the loss of 35,000 striking verizon workers. we should expect some redress with that there were 59,000ore
downward. also watch the unemployment rate. it came in at 4.7%. that was due to a decline in the the participation rate so not really good news and we have to watch the wage stats as well. they're important to the fed as well. a focus for asian investors, that payroll support. >> reporter: that's right, julia. so the markets here marking time and quite cautious. you have to ask yourself are the markets going to be agnostic at this figure. given the fact that regardless of the complexion of the number is the fact more or less made up his mind to tread cautiously and not undertake any rate hikes over the course of this year. i wanted to take a look at the currency. dollar yen has been close to the 100 mark. bad news for corporate japan.
stock specific, i wanted to talk about lg electronics. they're out with their earnings late july. we got an element of the guidance from them. say the second quarter operating profit likely to hit a two-year high. still below expectations though. i want to take a look a lot nintendo. the stock up. it's highest level in almost two months that's because everyone is getting excited about the push into mobility and pokeman go. my director tells me he's had a lot of fun playing this game. i have not played it to be honest with you. what i did do is i play add very rousing game of chess with my other director, in which he won: that tells you something about the generation gap, maybe. >> thank you so much. we're now joined by james butterfield. head of research and invest
strategy. it feels like it's been all about risk hedges at the moment talk to me about gold. >> we've seen a rise of gold. 52%. it's risen to 62% of assets. year to date we've seen inflows of $3 billion. post-brexit it was an increase in $1 billion. a massive flock to safe havens as people would expect and obviously the gold price has risen, but we're also seeing safe havens in other areas. the behavior is quite varied. we have seen minor inflow for the merging market debt products as well. it's not all flocking to safe havens and it seems that the biggest place where the market is hurting the most is equity funds at the moment. >> just break it down because we've had two weeks now since that brexit vote.
have you seen consistent inflows even in the past week into these safe haven etfs or has it moderated to some degree in the second week. >> it's been very consistent. every day we see perpetual purchasing. we see daily record inflows since the fund started in 2003 so. >> so that was the trade of the first half of the year, then? is it fair to say that? >> absolutely, yes. >> what do you think the trade for the second half of the year? is it going to continue? is it going to have legs. >> doesn't seem like there's any end toe the political issues. so after brexit we have the conservative leadership challenge. that won't be fully certain until october. the u.s. presidential race seems uncertain. we have u.s. monetary policy,
european monetary policy, there's a lot of uncertainty about the direction of these. even today when we get the payroll numbers, if they're strong, people are going to question again is the u.s. going to hike in september. at the moment only 2%. >> yes, am i able to look at gold and look at that play and say, oh, there's a really logical play in currencies at the same time or do you not think, i mean that dollar gold trend or that correlation that usually exists, we can't play it that way this time around. >> gold is inversely correlated to the dollar. at times of crisis it tends to couple with the dollar. the dollar has risen this time as well gold. that highlights this really is a risk trade. we've seen some very interesting. we saw a big selling of our short sterling products since post-brexit, but since then, it hasn't been all that clearcut. we've seen kinds by a lot of short euro products for instance
as well further purchasing now of short sterling, but also long sterling so been really divided now. >> people are going long sterling at this level. >> will yes, long sterling, long euro. very mixed right now. equal number of inflows to both products. >> what about oil? this is taken a lot of focus over the last sessions. we've seen drops this week and a little bit nervous feeding into the market again. what do you see in oil. >> started out very attractive and consequently we saw $450 million of inflows up until its peak, which was early march. since then we've seen pretty steady outflows and all the clients have been taking profits. the fundamental view oil is valued around $55 a barrel. >> you don't think recession, heading below 20. >> very unlikely. if you look at the margin of
cost to produce it is around $55 a barrel. every time saudi arabia trying to under cut prices, they will be hit with the fracturer prices. >> can i track you back to gold. i've read so many different articles saying that positioning of record high in goal. does that account for at least some of the rallying we're seeing in silver. people are diversifying into silver. is this what you're seeing? >> this is why we graded the gold price. record highs around 310,000. we expect it to settle back down to around 200, but it's exceptionally high and some clients are aware of this and thinking where is the alternative. if you look at the gold silver ratio, i appreciate it's a slightly different metal to gold.
it has more of an industrial gold. silver looks attractively valued. we're seeing it rise to some all-time highs too. >> james, thank you very much. director of head and research and investment strategy at etf securities. i just have to say loads of people writing in with comments on this discussion on police violence and guns and things like that in the u.s. keep your comments coming through with regards to what you make of what is taking place in the u.s. tania says thanks for having the discussion because it matters. hope is needed the struggle goes on. other people suggesting we need to sit down and talk about this in a peaceful way. >> keep sending you e-mails in. we love to hear from you. coming up on the show, one of these women, yes, it's going to be a woman, will be britain's next prime minster. who will it be. more on the leadership contest
hi, everything. welcome back. britain is expected to start trade talks with india. this as the uk looks to strike agreements with individual countries now that it has to replace around 50 trade deals negotiated by the eu. flying to deli today. met with chinese officials in london on thursday. >> this is so important. where is the chinese trade deal with the eu. this is very important. this is the uk getting on the front foot and saying we have not managed to negotiate these as part of the eu.
how can we do this alone going forward. this is a critical issue and the uk very much on the front foot, i like. >> i wonder what they're thinking. if they're thinking, oh, the uk chose to leave. we need to wait a bit then. see what happens with the eu. see what deals the eu come with the uk before we make any trade de deals. >> you mean china and india. >> yes. >> we are trading with them already. giving them a bit of confidence saying these guys are going to be able to negotiate. and then trump says no you would be at the front. i got goose bumps that day. goodness we have to be on the front foot and ensure a bit of confidence. >> it would be nice to have confidence. i'm just not sure it's there yet because of all the uncertainty. if i'm a country and i'm negotiating another trade deal with a country, i would like to
see the relationship with the eu before i negotiate that trade deal. >> yes. watch this, theresa may and andrea leadsom are the two to go through. may won the sport of 199 lawmakers while andrea leadsom took 84 votes. the news comes fastest pace in the 2 years in the wake of the brexit result. now a dallas police department has confirmed to a local nbc affiliate that the shooting suspect is dead. also two suspicious devices have also been found. we'll continue to keep you a breast of any further developments on that story. >> let's talk about the banks. uk banks over the last three months. many of them having a rough ride after the brexit vote. loids and rbs both lower. rbs office 22%.
barclays down. chairman at oak north and is with us this morning, a uk challenger bank. so you're a smaller independent bank, you're not listed. >> we're not listed. we started operating a year ago and our focus is on lending to small medium side growth companies and entrepreneur. >> so enterprise banking. >> yes. lending to corporate that are involved in building the businesses and providing with growth capital. >> what has brexit done to you or how do you view it in terms of your clients. >> overall it's created a huge degree of uncertainty in the market. that is clearly not a good thing. looking from our perspective, we are a bank that is very highly capitalized so it actually provides an opportunity for us to step in and provide lending where some of the larger banks my be contracting and pulling back: right now with the stocks where they are there's going to
be caution and we're in a position to respond. if you look at growth companies about 75% of s smrks e borrow against the commercial real estate. the bank of england came up with that figure. offer business model is not predicated on that. we lend against cash flow. we look at the underlying business. it's quality, et cetera. we are prepared to do things. >> what do you make of the decision to capital the bufferer rate. he said 150 million pounds out there for lending, but if we have a slow down in credit goet, it's going to be a demand problem rather than a supply problem. >> he has recognized we're in a radically different situation than we were a few months ago. now we have to deal with a economy that is struggling. i think test a positive step in princip principle. it does provide capacity, but in
reality i think banks are -- i expect banks are more likely to use the capital and preserve that rather than lend against it. also i suspect that most consumers and corporate are going to be reluctant and cautious. >> is it going to get more expensive to borrow. >> on one side interest rates are continuing to come down so that helps. on the other hand if you look at this credit spread that institutions are paying, those have been going up. on balance over the last two weeks, the two have pretty much evened themselves out. over time the risk premium will continue to grow and that will have a negative impact. >> what more do you want to see whether it's the government or the bank of england. >> i think funding for lending for example has been a very good policy. it's been extended. i think it's needs to be extended further. >> it ends in 2018. >> yes, i believe extended to 2020. these are all important incremental steps.
i think ats the end of the day the key is to try to resolve the uncertainty we have. we have two, three, maybe more years of really not knowing where we're going and how to get there. >> what happens to liquidity though. if we see a slow down, why would companies come to you versus bigger banks which maybe in times of stress, maybe would be viewed as safer from a regulatory standpoint. >> if we look at the capital structure of the bank, we have one of the highest capital ratios. that will be guided by our business mod and will we look at raising small size deposit s through the market. we don't see that as an issue right now. >> can i ask you about fin tech. london has this fin tech stek terror and very well known for it. do you think this is going to have a negative outlook on fin tech, particularly outward investment to the uk.
>> i think overall it's going to have a negative impact on all sectors. >> why, confidence? >> i think first you're going to invest if you believe it's an opportunity. if you see the opportunity declining or very unsurgeocerta which is going to be the case over the next two years. money capital i suspect is going to come down and thirdly there's been a lot of money from europe into the fin tech sec tosh of uk. that is probably not going to got until they see how this is resolved. >> thank you very much. chairman at oak north. >> some european len dors make need support. that is according to the vice president victor con stance owe. >> bank of month depiece say
it's working with authorities. the ecb sent a letter this week asking to cut loans by 30% in the next two years and they have until today to respond. >> in the meantime banco popular shows the bank would be resilient to adverse shocks. the results of a eu stress test will be released. you can see the shares up by more than 8%. still down 7%, but internal stress tests are boosting a bit of confidence in investors there. >> when looking at other stocks out there on move today, air france klm has announced the chief financial officer to step down in november. he's been with the company since 2013. also this morning the airline has reported a 1% year on year rise for the passenger numbers
on the month of june. >> apollo is considering a takeover. according to sources. shares near the top of the stock 600. coming up on the show, police continue their search for the suspects after the shooting of fellow officers at a protest. >> i was walking and a sniper just started shooting like all of the cops just came and shot. i just saw cops bending over. it has to be like five or six cops all getting shot down. it was right after the rally. we were just walking to the car. all the cops. >> how many. >> like three. i saw three. >> you did. >> we were running. they just kept shooting. we don't know where it was coming. i didn't see anybody else get shot. it was just the cops.
welcome back to striends. five officers are dead in dallas after two snipers opened fire during a dem graduation against recent police shootings. an nbc affiliate is reporting that one suspect has been killed. dallas police chief says they will work through the night to make all suspects have been captured. >> we were in negotiations with a suspect involved in these shootings at the garage of l central in downtown dallas. this suspect we're negotiating with for the last 45 minutes has been exchanging gunfire and not being very cooperative in the negotiations. european stocks holding on to slight gains ahead of u.s. job reports. following a volatile scene for
european embassy. banco popular shows its resilience to stocks. >> air france at the bottom of the line after cfo announces he is stepping down. >> dallas police department detective has confirmed to a local nbc affiliate that the shooting suspect is dead and two suspicious devices have been found. this after texas authorities confirmed five police officers were killed in the attack. it is believed two snipers opened fire on the officers during a demonstration over recent police shootings in minnesota and louisiana. speaking at a press conference earlier, the city's police chief said that believed multiple suspects were working together. >> working together with rifles try anglelated at elevated positions in different points in
the downtown area where the march ended up going. the route of the march. and so there had to be some speculation from us that there's some knowledge of the route where you would be because how would you know to post up there so we're leaving every motive on the table of how this happened and why it happened. >> nbc's edward lawrence joins us from washington. edward, we were having a conversation here on air earlier. a bit heated. loads of people have been writing in with their views over what's been going on. what seems to be happening now? >> president obama has been briefed on this. when he landed in poland he talked about the police shootings. the president is being briefed on the dallas situation now as he gets ready for his last nato summit. we have three shootings in the last 36 hours, either by police officers or targeting police
officers in this case. now those three shootings have the nation on edge. the president said a number of things in a statement and one of the things he said when we talk about black lives matter it also means blue lives matter. the president there says he has been updated again on the shooting in the dallas. there were protests outside of the white house in atlanta, in new york yesterday because of the police shootings. we now have three investigations in three different cities. the first in baton rouge, louisiana where police pinned and killed alton sterling after he was outside a convenience store. then in minnesota a traffic stop led to a shooting of if i plan droe castillo. that was caught on video a live facebook posting. his girlfriend sitting next to him in the car. talking live about that situation. the louisiana governor said he is calling for justice in that situation there. now we have the police shooting in dallas. the president has been briefed on the situation.
he's expected to speak about the shooting in dallas in the next 30 minutes. no plans yet for him to cut the nato trip short, but the president speaking in about 30 minutes on this. >> edward, thank you very much. we will be taking the speech live for our viewers. if police are getting shot, is this going to change the way the government thinks about gun control? >> reporter: you know, that's a sticky issue. yesterday there were demonstrations on the house floor here in congress. democrats came and red the names of gun violence victims and held their pictures up to get more gun control in the united states. however two of the three she shootings here were by police officers killings folks in the african-american community. so there's a lot of racial tension going on. it's interesting to see how the gun control debate will evolve now. we do have as you heard the dallas police chief say there were at least two folks in
evaluated positions targeting police officers with long guns. in the video i've seen you can hear multiple shots in dallas, almost like assault rifle type shots. i don't know if that's coming from the police or the suspects, but clearly 11 people shot, five officers dead in dallas. it will be very interesting to see what happens and how this changing the gun control debate. >> edward, thank you very much. joining us via nbc news. you can still send your comments through, you questions through, either at j chatterley or louisa bojesen. you can also follow everything on our blog. go to world markets live. that's on cnbc.com. >> let's take a look at the market this is morning. gains for the dak. set ra dax.
ftse sti ftse 100 still down. we are seeing a bit of a bounce. the autos all higher. let me give you a look at sterling too with a brighter more positive sentiment this morning. sterling a touch higher here as you can see. . trading below that 1.2940 level this moment. also seeing a bounce no crude after that 5% selloff yesterday. it's been a pretty turbulent week once again. two drops over 5% this week. a bit of consolidation in the session this day. >> yes. we have world leaders gather in warsaw. eastern europes borders in response to aggression. underlined the need for nato to reassure the eastern european a all alleys. >> the security situation in europe has changed.
we have deeply unsettled our eastern alleys. when the valuety of the law and invalidity of borders are questioned by actions, obviously trust the lost. this has deeply rattled our alliance partners in the east. >> this feels like europe is becoming more hostile and has become so over the last couple of months. just map out some of the talking points and some of the things that will happen from this nato meeting. >> reporter: well, certainly here at nato they're really all about projecting unity. about projecting strength and trying to walk a fine line here. they have to be a deterrent to reduce aggression. at the same point not seem too aggressive on the russian border. take a look at what the secretary had to say earlier. >> nay to does not seek confrontation. we don't want a new cold war. the cold war is history and it
should remain history. we will continue to seek constructive and meaningful dialogue with russia. to make our intentions clear, to dispel any misunderstanding and to reduce the risk of military incidents or accidents spiraling out of control. >> reporter: when we talk about a deterrent to russian aggression here, what is being spoke about is a battalion between the baltic states. that's more to psychologically reassure the european countries: also of course to act as a deterrent to russia as well. the big question of course going forward is really how effective can this be. take a listen again to what the secretary general of nato had to
say. >> we have augmented air defenses with surveillance planes and defensive missile systems. we have increased the number of exercises, sped up or decision making and developed a strategy to deal with hybrid threats. so we have bolstered nato stability and readiness to defend our territory and our citizens. >> reporter: of course, 4,000 troops may sound like quite a few, but back in the cold war the united states had as many at 300,000 personnel station instead europe. what we've have heard from analyst over the last months with the russian troop strength being what it is, they could be in baltic capitals between 36 and 06 hours. in terms of what the force could do, it's more of a psychological
force, but how much of a deterrent can it be: especially with the backdrop of brexit. >> obviously the eastern european is concerned about what a uk exit will mean. i think behind the seens the french and german are concerned about what the lack of unity means for their own reflection and strengths. what does beefing up security look like and what does it mean for nato. >> reporter: i think that's the outstanding question here and the conversation that's being he had. if you look behind me you see a massive stadium. it's basically just showing you the level of the biggest nato summit in history. we're talking about delegations from allstates. affiliated with nato as well. a lot of participation and the conversation going forward is what does yurmz security really look like. that is who is going to pay for it. we've seen over the last couple of years a major up tick in
spending in the european countries, but most of them falling short of the original agreement. of course, we've heard earlier from nato officials that not only do they need to beef up spending for nato security, but they also need to do it in their own defense budgets as well because the first line of defense is your own military. the question about how much is being spent in terms of the eu how many agreements they're going to have to make to keep the eastern european countriies feeling safe is a big concern. >> we're going to take a break. straight after we'll be talking about the payroll report. last month was a total stunner. we look to the number right after this. stay with us, we're back in two.
germany striker extended his lead as top scorer in the tournament with the two goals bringing his tally to six. france now faces ronaldo and portugal in the final on sunday. this is the reaction to the goals in the french fan zone. >> absolutely nuts. >> yes. >> big celebration. now we have one more to go. >> one more to go. >> france versus portugal. i think prance is going to take it they look strong. >> the underdogs, wales, iceland, they got all the way to the end. >> i suppose, but when you've got the home team behind you and you're in your home city.
we'll see. we need to look at the markets and the implied open there. slightly mixed. s&p and dow jones just a couple of points higher. nasdaq a couple of points off. we're all waiting for the u.s. jobs data this afternoon. in fact right now, here it comes. >> thank you as you said its payroll friday and expectations for job gains of 160,000 as you can see behind me right here. gold man sax the outliar here. we learned this week from the fed minutes a number of policymakers expressed concerns about a slowdown. those figures were skewed by a loss of 35,000 striking workers at vierizon. you can't ignore the fact we saw
downward of 59,000 jobs. also keep an eye on the unemployment rate. came in at 4.7% last month. that was a decline in the participation rate. not great news. the wage stat is going to be important here too. >> julia, the cleveland federal reserve president is saying there's evidence that wage gains in the u.s. are starting to heat up and the economy is, quote, very solid. in an interview with "the wall street journal". chief economist joins frus minneapol minneapolis. good to have you with us this morning. what are your expectations from the payroll figure this afternoon and what happens if we drastically overshoot. >> we are looking for around 140,000 so gantly under the expectation of the market, but certainly an improvement from
that disappointing may employment report. even if we do see what the market is expecting or even an outsized increase, that still isn't enough to instill a upward trajectory. may was an outliar in terms of coming in weaker than expected in that headline number, but the tread of hiring has been on the decline for quite some time. last year we were hiring at a pace of 300,000. that slowed to 200,000 in the second quarter and now just over 100,000. good reason for fed officials at this point to remain concern. >> duane: >> is sit an instance of looking at the number and sighing if it's over 100 we should be
nervous and if it's well over 150 we should be thinking about a fed rate hike. >> it really depends on how low your bar of expectations has become. really we look for a number of 200,000 or above to be an indication of strength. now it seems as if the market has in fact priced around 150 or 100,000 as the break even. that is not indicative of a strong u.s. labor market and, certainly, not indicative of a strong u.s. economy able to withstand further removal. i think from testimony fed standpoint they will be looking for outright strength. meaning a consistent reading above 200,000 in order to feel comfortful fa the u.s. labor market is on firm foot sglg whether the fed seem to admit it or not, they steam eem to be mo aware of international issues. how concerned are you by brexit and the spillover affects into the u.s. economy.
we have analysts disagreeing over what the spillover affects are going to be. >> reporter: well, i certainly think there is a risk of contagion and fed officials were very clear in the june meeting while is was predominantly the weakness in the labor market that kept them sidelined. one of the big policies doing forward would be brexit. now, if we do see the uk economy continue to lose momentum. that will trickle out into a feeling of decline for the european economies as well as the u.s. it really depends on the contagion or the extent of the contagion of the weakness from the british economy. i do think in some ways the u.s. economy is isolated from that weakness, but, again, bringing it back to the domestic economy in the u.s., that really is first and foremost what will continue to keep the fed
sidelined. very sluggish spending here at home. negative business investment for more than a year. inflation and on and on. really no bright spot here in the u.s. economy so independent of what's happening abroad, the fed certainly has no senseover immediacy to continue raising rates. >> is it the wage growth we should be looking at, lindsey? is it wage inflation it's all down to or are there other pointers from the economic data you think we should be following closer. >> reporter: as far as the labor market, i think the fed will be focused on the wage component. yes, we do want to watch the top line number in term of the number of jobs being created. we will get a sans of how much slack is being absorbed. we have seen a little bit of upward momentum in wages, but still a longer term trend
bouncing around the 2% level. fed officials to feel comfortedable would like to see a clear up yaward momentum in wages. maybe 3% on an annual basis. >> thank you very much. chief economist. moving on dallas police department has confirmed to a local nbc affiliate that the shooting suspect is dead and two suspicious devices have been found. this after texas authorities confirmed five police officers were killed in the attack. it's believed two snipers opened fire on the officers during a demonstration over recent police shootings in both minnesota and louisiana. >> nbc's curt gregory has more on the story. >> reporter: shots fired as protests over the police involved shooting deaths of two african-american male this is week turned violent in dallas. at least ten officers shot with
multiple fatalities. >> i ask everybody to focus on one thing right now, and that is a dallas police officers, their families, those that are deceased, those that are in the hospital. >> reporter: a sharp contrast to the peaceful demonstrations in baton rouge. for 37-year-old alton sterling shot and killed tuesday after a confrontation with police. that incident captured on cell phone video is provoking questions and outrage nationwide calling if the officers to be charged with murder. at a vigil for sterling, louisiana's governor asked to keep the peace. >> now may be a time for demonstration and protest, but there is no time for violence. >> reporter: the unrest continued in minnesota where demonstrators march to the governors mansion held a individualle for 44-year-old casteo. video of the traffic stop turned deadly also went viral.
it shows the moments after an officer shoots casteo his girlfriend streaming it online. mark dayton called for justice. >> would this have happened in the passenger or drivers were white? i don't think it would have. justice will be served. justice must be served. >> protesters are making sure their voices are heard. it's not clear what happened moments before either confrontation and as two communities and the nation look for answers, the investigations are just beginning. curt gregory, nbc news. >> we've talked already in the show ant this. two issues, race relations in the u.s. and the other thing gun crime and gun control. someone wrote into my question about how do you reset relations in the u.s., and he said better opportunity, better education and giving certain people in the country more hope, which i thought was an interesting
response. >> look, we kicked off the show. i'm pretty angry. i'm angry again, and, again, and, again, see this. time and time again. you know, and i have no solutions either. there are a number of you that write in and disagree with me and i'm fine with i just like to understand why it is that you think it's so important that everybody carry a gun because i'm assuming that means that you think that the world becomes a better place. that you live in a better society if everybody has a gun. it's kind of if you're in class and i know professor who teaches in the u.s. and students now are legally able to carry firearms. >> if you lived in the u.s. in this kind of environment, would you want to be able to protect yourself. >> would you want to sit in a classroom knowing that people around you would have gun. >> steve: >> would you want one too? >> that's the problem. >> i know would you want to
protect yourself. >> it's the wrong starting ground to come from. it shouldn't be everybody has a gun, so therefore i need one. >> unfortunately, that's the situation people are in right now, but hey we're just liberal europeans. >> i'm not -- i just like to think of things whatever makes the most sense for society as a whether or not he will. now it's so divided. >> i know. i like to sit somewhere in the middle and choose based on that. >> we where still going to be here in two hours discussing this guys, but we have to wrap to show up. "worldwide exchange" coming up next. there's the futures. have a great weekend. see you all soon.
good morning. breaking overnight in dallas. five police officers have been killed in an ambush. we'll have all the latest for you in just a moment. and it's jobs friday. why this post-brexit report matters more than ever. it's friday, july 8, 2016. worldwide exchange begins now. >> good morning and welcome to worldwide exchange on cnbc.